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Lifetime Mortgages, Home Reversion, and General Equity Release Advice Surrey
Reviewed by Tom Philips

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Equity Release Surrey & Near Surrey

Equity release Surrey is increasing in popularity, but there are still many people who aren’t aware of the benefits of releasing equity, particularly in such a wealthy area.

If you have never heard of equity release in Surrey before, it’s time to get to know this exciting process and help you understand the features and risks involved.

On the other hand, if you already know a great deal about Surrey equity release, do not hesitate to contact us and find out how you can get started with an equity release plan that suits your individual situation.

Please call our 24-Hour Helpline: 0330 058 1579

House Prices in Surrey

According to Rightmove, the average house price in Surrey in 2021 was £627,799, which is 4% higher than it was the previous year [1]. The majority of houses sold are detached homes, with the second most common being semi-detached.

Property is becoming more and more valuable in Surrey, which means many pensioners have watched their property increase in value a significant amount since they first bought it.

What can you do with this information? Well, if you are a pensioner in this situation, you don’t have to sit around while the value of your property increases. Instead, you can directly benefit from this rise in value by taking out money secured against your property.

Either through taking out a mortgage or selling a share of your home, you could receive a loan that will not be owed until you pass away or move into long-term care.

When this occurs, the money from your property sale will cover the loan. There are risks involved with this, so we will give you all the information you need to ensure the process is safe, but for many people, equity release has been life-changing.

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Why Should I Consider Equity Release in Surrey?

It is the norm to spend your life earning money and then pass this on to your children when you pass away.

Though many people are still fond of this idea, wanting to ensure their children and grandchildren are well looked after, times are changing and we are beginning to see how important it is to live for yourself and enjoy your retirement.

That’s not to say that people who take out equity leave nothing to their families in favour of spending all of their money. However, it does mean that if they have been struggling financially, they may decide enough is enough and they want some extra income to enjoy in retirement.

This will most likely reduce the amount of money their family will inherit, but it will by no means leave their loved ones with nothing.

When you have the extra money in retirement, you are spoilt for choice with what you can spend it on. Some people need to spend it on practical expenses such as bills, otherwise, their quality of life would be affected.

However, others are able to use their money for home improvements, family holidays, and cars. Why not spend some money on yourself in your later years when you’ve spent years working for it?

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How Does Equity Release Surrey Work?

Equity release is a type of loan. To release equity from your home in Surrey is to release some of the money that has built up over the years in your home.

For example, just think about how much money has built up after all those years of paying off your mortgage! The equity inside your money includes much more than just your monthly mortgage repayments, though [1].

Your equity includes things such as your initial mortgage deposit, your monthly mortgage repayments (minus any interest) and the increase in value your house has benefited from over the years.

Most houses increase in value significantly over the years, so you might be surprised to find out just how much your house is now worth.

When you release equity from your home, you are given either a lump sum or a number of payments. You are also free to spend this money on whatever you want, within reason.

With equity release in Surrey, you do not have to repay your loan until you pass away or move into a care home.

Once you pass away or move out for health reasons, your next of kin will have to sell your property, so that they can pay off the equity release loan on your behalf. They usually have 6 – 12 months to do so, which shouldn’t be a problem.

The loan, plus any interest, will need to be repaid in full at this point. Any money left over will go to your next of kin as inheritance [2].

You need to remember that as with any type of loan, you will be charged interest on your equity release loan.

This interest will either be charged every week, every month or every year, depending on the terms and conditions of your loan. This interest will quickly compound over the years.

What Are Equity Release Schemes?

The two main types of equity release schemes are known as lifetime mortgages and home reversion plans, which millions of people across the UK, including Surrey, have been using for years.

Lifetime mortgages are the most popular form of equity release, which allows individuals over the age of 55 the chance to gain access to their equity.

With lifetime mortgages you are charged interest which will turn into compound interest over the years.

You do not have to repay your lifetime mortgage until you pass away or move into a care home, as explained above. With lifetime mortgages, you remain the sole owner of your property and no lender will ever ask you to move out or sell up.

Home reversion plans work slightly differently to lifetime mortgages, in that you have to sell a specific percentage of your property to the lender in order to gain access to your equity.

You could sell as little as 10% of your property to the lender, or as much as 90%. Once you do so, you will receive the same percentage of equity, taken and released from your home.

When you come to sell up after opting for a home reversion plan, the lender will receive their share of the proceeds from the sale of the property, rather than that money going to your loved ones as an inheritance.

What is a Lifetime Mortgage?

If you discuss equity release with an impartial adviser, the first option they will usually mention is a lifetime mortgage.

As the name suggests, this involves getting a mortgage that lasts your whole life, and that you do not have to pay back until you die or go into long-term care.

With this scheme, you continue to retain full ownership of your home, and you are usually expected to stay in your home in Surrey until the completion of the scheme.

However, sometimes there is the possibility to move home if you request this, but you would have to find a property that was approved by the lender. Most often, this property would be the type of home the organisation would offer to a new equity release client in Surrey.

What is a Home Reversion?

Another option is to sell a portion of your home, or the entirety of your home, to an equity release provider. In this scenario, you are giving up your status as homeowner, but you get to live in your property without paying rent.

As well as this, you will be given a tax-free lump sum of cash to spend on anything of your choosing.

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Which Specialist Equity Release Surrey Scheme Should I Select – Scenarios

To get a clear idea of which equity release plans would be the best for you, we encourage you to reach out to us so we can ask all the right questions.

For now, we’re going to present you with various scenarios and decide which plan would be the most suitable for each one.

Scenario 1: The consumer is interested in equity release as they would like to borrow money to rent out a property

In this scenario, the obvious plan for the consumer is the buy-to-let plan, which allows consumers to take out a loan to purchase a property that they will then rent out and collect income from. With this arrangement, the interest rate is fixed. The money can be paid all at once or in instalments.

Scenario 2: The client likes the idea of releasing equity in Surrey, but they are concerned about the possible interest accrued

This client would do well with an interest-only scheme, as this would require them to pay back some or all of the interest on the loan each month. The total amount owed at the end of the scheme would be reduced as interest would not be included.

Scenario 3: The homeowner cannot decide whether they would like their money as a lump sum or a regular income

In this situation, we would advise a drawdown plan, as it is a combination of the two options. At first, the client would receive a lump sum of cash, and after this, they could withdraw extra money whenever they wanted to, or request that monthly payments were paid into their bank account.

Please call our 24-Hour Helpline: 0330 058 1579

Does having a Power of Attorney in Place Effect Equity Release?

Many people are concerned about whether they can take out equity if they have a power of attorney (POA) in place.

The answer is usually yes, and in fact, some arrangements allow you to implement a POA for the first time as it is important to have someone else to rely on for your finances in case you end up deteriorating in your later years.

How does Equity Release Affect the Inheritance I Can Leave?

Another worry many potential consumers based in the UK have is whether they will be able to leave money to their family. We have briefly covered this, but we want to reassure you that it is possible to prioritise inheritance with equity release.

You must mention this to the adviser to ensure you are offered a plan that takes this into account, i.e. a plan with inheritance protection, such as home reversion plans.

Please also be aware that inheritance tax is not applied to money released from equity, so your family will not have to worry about this if you pass on some money to them.

Please call our 24-Hour Helpline: 0330 058 1579

Can I Get Equity Release with an Existing Mortgage?

If you have an outstanding mortgage, you can still take out a lifetime mortgage, but you need to speak to an unbiased adviser first as some mortgage advisers have specific conditions surrounding this.

Usually, you can use the money from the equity loan to pay off your traditional mortgage, such as an interest-only mortgage.

Do I pay Interest on Equity Release?

If you have a home reversion, interest will not be on your radar as you will receive tax-free cash. However, with a lifetime mortgage, you will need to consider the different interest rates on different plans.

Generally, you will pay less interest if you take out money as and when you need it, as interest will only be charged on the money you withdraw. This is applicable to drawdown plans, as opposed to lump sum plans, where you receive the entire loan in one go.

What are the best equity release interest rates?

The below table is valid as of February 2024:

Provider MER Type Product
Aviva 7.68% Fixed Drawdown
Aviva 7.68% Fixed Lump sum
Pure Retirement 6.03% Fixed Drawdown
Pure Retirement 6.03% Fixed Lump sum
Just Retirement 6.66% Fixed Drawdown
Just Retirement 6.66% Fixed Lump sum
Canada Life 6.73% Fixed Lump sum
Canada Life 6.73% Fixed Drawdown

As you can see, Pure Retirement is offering the best rate of interest on equity release at 6.03%.  Interest rates will also vary depending on your circumstances, as well as whether you opt for either an income or a lump sum of cash.

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What are the Downsides of Equity Release For Homeowners?

We cannot ignore that there are some downsides to unlocking the equity in your home.

Neglecting to mention this would be misleading, and we want to make sure you are in the position to make a sensible decision about what to do with your property.

Firstly, some people do not like the idea of later life lending as it feels like a constant burden, even if they know it doesn’t have to be paid back until they have passed away.

This is especially concerning for them if they want to leave money to their loved ones, as they may not want to do anything that reduces the amount their beneficiaries could inherit.

Secondly, other expenses involved in equity release in Surrey may deter people from starting the process. There are solicitor’s fees, administration costs, valuation fees, and other expenses that you must pay for if you are looking to release equity.

Not only is this financially taxing, but it can also be time-consuming, which is particularly stressful if you are still working at the time of your enquiry.

Finally, though there are many different equity release options available in Surrey, there are different conditions for each one which means you may not necessarily find one that is perfect for you.

For example, you may like the idea of a voluntary repayment plan as it appears you can pay back the loan whenever you want to.

However, there are still limits to this, as you usually have to wait a certain amount of time before you can make repayments during your lifetime, and the loan may not be fully payable until the end of the scheme.

If you decide that accessing the money that is tied up in your home is not right for you, we will help you to consider other options, such as downsizing.

If you move to a smaller house, you could be spending less money on your mortgage and bills, putting you in a better financial situation.

If you are releasing equity to combat the cost of living, then it might be better to first try to see if you can better manage your budget. Below, we list organisations that may be able to help in Surrey:

1. Citizens Advice Guildford and Ash

Address: The Ash Centre, Ash Hill Rd, Ash, Aldershot GU12 5DP

Telephone: 0808 278 7888

Website: http://www.ca-ga.org.uk/

2. Citizens Advice Runnymede and Spelthorne

Address: The Old Library, Church Rd, Addlestone KT15 1RW

Telephone: 0808 250 5706

Website: http://www.citizensadvice.org.uk/

3. Citizens Advice Surrey Heath

Address: Surrey Heath House, Knoll Rd, Camberley GU15 3HD

Telephone: 01276 417900

Website: https://www.citizensadvicesurreyheath.org.uk/

You can also reach out to organisations such as the Money and Pensions Service or StepChange. There’s also useful information on Surrey County Council’s website if you are struggling with the cost of living.

Please call our 24-Hour Helpline: 0330 058 1579

How Much Can I Borrow with Equity Release in Surrey?

When it comes to lifetime mortgages in Surrey, you are able to release up to 60% of the value of your home, which could end up being a reasonable amount, depending on the value of your home.

Whilst this is often the maximum you are able to borrow, some people are able to borrow more, depending on their age, health and personal circumstances.

However, some people who opt for equity release simply do not need this amount of money, so opt to release as little as 10% – 20% of the value of their home.

After all, you will be paying interest on the money you release, so it is always advised to only release as much as you need [3].

There are a number of factors that are taken into consideration when deciding how much equity you will be able to release from your home.

For example, your age, health and current lifestyle will be taken into consideration.

Your lender will want to know all manner of things about you, including whether you are suffering from any health conditions, or are likely to in the future.

The current value and condition of your home will also be taken into consideration, and the lender is also likely to send someone to carry out a valuation on your home before deciding on how much money they are happy to lend you.

Please call our 24-Hour Helpline: 0330 058 1579

How Much Does Equity Release Cost?

Equity release in Surrey involves a number of setup costs, including the cost of an equity release solicitor and a home valuation.

This can cost anywhere between £1,000 and £2,000 depending on how complex your application is and how qualified your solicitor is [4].

At Equity Release Warehouse, we always recommend that you choose a solicitor who is well-experienced in dealing with equity release loans and applications.

As with any loan, you will be charged a certain amount of interest. When it comes to equity release, your interest rates will be fixed meaning that they will not change during the duration of your loan.

This means that you will be able to see exactly how much interest you will have to pay back over the years during the initial application stages, and in your loan illustration before agreeing to the equity release loan [4].

Please call our 24-Hour Helpline: 0330 058 1579

How Long Does Equity Release Take?

Equity release in Surrey usually takes approximately 8 – 12 weeks to process your application. You will have to work through a number of steps with your equity release adviser and solicitor before even applying for the loan.

Typically, this process can be longer or shorter depending on a number of factors, including how complex your application is, how fast your solicitor is able to work, what type of equity release plan you are applying for and the value of your home.

Some lenders are becoming incredibly good at approving loans quickly, with some people receiving their funds within 3 weeks.

However, this is only in certain circumstances and with only a small handful of lenders.

What Is A Loan-To-Value And How Does It Impact Equity Release?

If you have ever taken out a mortgage, then you would have heard of people referring to a loan-to-value ratio before.

Whilst this term can seem confusing at first, the concept is actually really simple. Your loan-to- value ratio is the size of loan against the total value of the property.

Most people across Surrey are able to put down a 10% deposit. This means that they will be offered a 90% mortgage, so your loan-to-value (LTV) ratio is 90% [5].

When opting for equity release, it is really important that you have a clear grasp of your loan-to-value ratio so that you can be sure that when the time comes, your loved ones will be able to repay your loan from the proceeds of the sale from your house.

Please call our 24-Hour Helpline: 0330 058 1579

What Can I Use Equity Release Surrey For?

Most people spend their equity release funds on the cost of living or creating a better lifestyle to enjoy their retirement.

However, more and more people across Surrey are spending their equity release money on helping the younger generation, their children or grandchildren with the cost of living, buying their first property or paying for University fees [6].

Others spend their money on home improvements, which is a great way of ensuring that you are adding value to your home, increasing the chances of making sure that you are able to leave at least some inheritance to your children.

This could include things such as an extension, a new kitchen or ramps and other accessibility features to ensure that you are able to live comfortably in your home until you pass away [5].

Please call our 24-Hour Helpline: 0330 058 1579

Can I use Equity Release To Pay Off Interest-Only Mortgage?

Yes, releasing equity on an interest-only mortgage in Surrey is perfectly fine.

Interest-only mortgages are an extremely popular and common way of keeping your monthly mortgage payments as low as possible, which is extremely attractive to borrowers during high interest rates [7].

Interest-only mortgages are different to a traditional mortgage in that you only have to repay the interest on your loan each month, as opposed to the full amount.

This means that your monthly mortgage repayments are only a fraction of what someone else on a traditional mortgage would pay [8].

However, there is a catch. Once your mortgage term comes to an end (usually after 25 – 35 years) you will be responsible for paying off the full loan amount, which usually sits in the hundreds of thousands.

In fact, in order to qualify for an interest-only mortgage you have to have proof and evidence of how you plan on paying back this large amount when the time comes [9].

Please call our 24-Hour Helpline: 0330 058 1579

Can I use Equity Release For a Divorce Settlement?

Again, it is perfectly fine to use equity release for your divorce settlement.

In fact, releasing equity from their home has helped thousands of people up and down the country come to an agreement and settle their divorce.

For example, some might choose to release equity from their home so that one party has enough money to buy another house or flat outright, whilst the other gets to remain living in their home for the rest of their life.

This option provides both parties with a guaranteed house and even some savings [8].

You will need to know exactly how all of your other assets will be split between the both of you, but opting for equity release in Surrey can be a straightforward process when it comes to your property [8].

Please call our 24-Hour Helpline: 0330 058 1579

Can I use Equity Release For Home Improvements?

Using your equity release money on home improvements is a great option, as this will most likely increase the value of your property and make your home a more comfortable place to live in as you get older.

This could include anything from building an extension on your property to increase the amount of space you have to live in, to getting a new and more modern kitchen or bathroom to make you feel more at home.

You might opt to install handrails across the house, or put a stairlift or ramp in place to ensure that you are able to enjoy living in your home as you age [9].

By doing so, you might prevent having to move into a care home or get carers in, which can be incredibly expensive in Surrey in particular.

It is also important to remember that once you do move into a care home, you will have to sell your home and repay the equity release loan.

It is wise to consider renovating your home to make it more accessible, such as adding a stairgate, a shower chair, and rearranging the furniture so that it is easy to get around.

This can be a better option to moving to an accessible home, as you may struggle to find a property that fits your criteria, and you don’t want to settle on a home that you don’t like simply because it is more accessible.

If you are adding equipment to facilitate a disability, be aware that you could be entitled to a higher loan and various other benefits with an enhanced/ill-health plan, so get in touch to talk about the details of this. For instance, in certain circumstances, you will need to inform the Department for Work and Pensions (DWP) that you have received a lump sum of money.

Please call our 24-Hour Helpline: 0330 058 1579

Can I Use Equity Release For Buy To Let Property?

Yes, you are able to release money on and for a buy to let property in Surrey.

Lots of people release equity to invest in other properties, although you have to be open and honest with your lender from the start if this is what you are choosing and planning to spend your equity release money on.

Owning or renting out a property is a huge investment, especially in later life. So, if this is an option, make sure that you have thought long and hard about the added responsibility of owning a second property and renting it out to others.

Naturally, this can be a huge source of income for retirees, which can help them to live a more comfortable lifestyle during their retirement.

If you do want to release equity from your home to pay for a buy-to-let property in Surrey, then you might only be able to apply for certain loans with certain investors.

This is why it is incredibly important to be as open and honest with your equity release adviser about exactly what you plan on spending your equity release money on, especially if you plan on spending it on a buy-to-let property.

Please call our 24-Hour Helpline: 0330 058 1579

Can I Use Equity Release to Pay for Care Home Costs or Medical Bills?

Yes, using equity release money to pay for you or your loved one’s care home costs or medical bills is a great way of spending your equity release money.

By doing so, you won’t have to move out of your home, meaning that you won’t have to sell up and repay the loan.

Care costs across Surrey and the rest of the UK are increasing year on year, which is why it is always important to have a plan in place for when the time comes to pay for your care costs.

In fact, Age UK [10] found in a recent study that the average care cost is approximately £800 a week, and up to £1,078 for a place in a nursing home.

They also state that individual care at home might be more expensive [10].

As you can see, this is incredibly expensive and for a lot of people, simply impossible to pay for.

However, it is important to remember that your local authority will usually pay for a portion of your care costs, depending on how much money you have in savings at the time.

If you own a property, then your home will be included as part of your assets and savings.

If you are looking to release equity from our home and want to spend this money on your care costs, then it is best to speak to an equity release adviser first, to discuss your personal circumstances and options.

Please call our 24-Hour Helpline: 0330 058 1579

Is Equity Release Safe?

Our team at Equity Release Warehouse believe that equity release is a great option for many people across Surrey and up and down the country.

However, we are not in denial and accept that equity release might not be for everyone.

Equity release is only for those aged over 55 years old, who own their own home worth more than £70,000 and who plan on living in this house for a long period of time.

As with any type of loan, there are always risks involved. These risks include things such as not being able to repay the loan when the time comes, and wanting to move home after taking out the loan.

It is also important to remember that you will be charged interest on your equity release loan, which will quickly compound and snowball over the years, meaning that you will owe more and more the longer your loan continues.

It also helps that the equity release industry is now regulated by the Financial Conduct Authority and the Equity Release Council.

These bodies ensure that the industry and all of its players, including advisers, solicitors and lenders play by the rules and are offering fair and transparent loans.

Please call our 24-Hour Helpline: 0330 058 1579

What is a No Negative Equity Guarantee?

The no negative equity guarantee is offered with all loans across Surrey and the rest of the UK, which should be regulated by the Financial Conduct Authority and the Equity Release Council.

This guarantee protects your loved ones and next of kin from having to repay your loan once you pass away and sell the house, should the proceeds from your home no longer cover the loan amount [11].

Whilst this is rarely the case, it is possible that your house might decrease in value over the years, due to the market dropping or a serious issue with the property itself.

If you live for a number of decades after taking out an equity release loan, then your loan will add up to a substantial amount.

This means that the proceeds from the sale might not be enough to cover the equity release loan [11].

If this should happen, then the no negative equity guarantee will ensure that your loved ones are not liable to pay off the loan on your behalf.

Instead, the lender will be liable to pay off the difference [11].

Please call our 24-Hour Helpline: 0330 058 1579

What is the Equity Release Council?

The Equity Release Council is the industry body for all things equity release. They ensure that all lenders, advisers and solicitors are playing fair and within the rules. This body ensures that all products are fair and transparent and are only offered to clients in the clients best interests.

The Equity Release Council has a list of standards and values, which all advisers, solicitors and lenders across Surrey and the rest of the UK must abide by.

For example, they assure that all products include a no negative equity guarantee, fixed interest rates and the right to remain living in your home for as long as you want, without ever being asked to move home or sell up [12].

Please call our 24-Hour Helpline: 0330 058 1579

Can Equity Release Affect State Benefits?

Yes, taking out an equity release loan in Surrey and throughout the rest of the UK will have an impact on any means-tested benefits you receive.

This will include things such as Universal credit and income support allowance such as job seekers allowance. This also includes things such as child tax credit, housing benefit and working tax credit.

This is because all of these things are based on your income and savings. Once you release money from your home, your savings will increase significantly.

So, if you are currently receiving any of these benefits or will be in the future, you might want to seriously consider whether applying for equity release is the best option for you.

Please call our 24-Hour Helpline: 0330 058 1579

Can I Still Sell My House After Taking out Equity Release in Surrey?

Yes, you are still able to sell your house after taking out an equity release loan in Surrey. However, if you are selling your house to purchase a smaller house then you might have to repay a percentage of your equity release loan.

This will depend on what type of property you are hoping to sell up and move to and how much the new property is worth.

If your equity release adviser is part of the Equity Release Council, which they should be, then according to your contract you should be able to move to an alternative, suitable property.

This means that the new property must fall within the guidelines the lender sets [13].

If the new property is of similar value to your current property, then you might simply be able to ‘port’ your mortgage, which means that you won’t have to repay a percentage of your loan by moving house.

If you wish to move to a smaller and cheaper house, then you might be charged an early repayment charge. If you benefit from downsize protection then you might be able to avoid these charges [14].

Please call our 24-Hour Helpline: 0330 058 1579

Can Equity Release in Surrey Be Repaid Early?

Yes, equity release loans in Surrey can be repaid early if you choose to do so. Unfortunately, by doing so you will be charged what is known as early repayment charges, which can add up to a considerable amount [14].

These early repayment charges will be laid out in your illustration, which you would have been sent from your lender upon applying for the loan.

Most equity release loans allow you to repay a certain amount, usually up to 10% of your loan before they will start to charge you any early repayment charges [14].

Most lenders charge their customers early repayment charges because equity release loans are usually long term plans, which continue for as long as the individual lives.

If you have recently taken out an equity release loan but think that you want to repay the loan early, then speak to your equity release adviser or solicitor about repaying your loan early.

Please call our 24-Hour Helpline: 0330 058 1579

How Does Equity Release Work When You Die?

When you pass away, your equity release loan will end and will need to be repaid. Usually, the individuals next of kin will be responsible for selling the property, which will be used to repay the loan.

This means that your loved ones won’t receive their inheritance from the sale of your house, unless your property has increased in value significantly and there is money left over after repaying the loan, which will naturally go to your loved ones as inheritance [15].

Remember, you will also have to pay off agent and solicitors fees [15].

Don’t worry about your loved ones being responsible for repaying your loan. All equity release products have to offer a no negative equity guarantee, as part of the terms and conditions under the Equity Release Council.

This guarantee safeguards your loved ones and their finances, as it makes the lender liable to pay off the equity release loan if the sale of the house does not cover the total loan amount [15].

Please call our 24-Hour Helpline: 0330 058 1579

Can Equity Release Be Taken Out For Tenants In Common?

Yes, taking out equity release as tenants in common is perfectly fine. When you are a tenant in common, each co-owner shares a certain percentage of the property.

When one owner passes away, their share of the property will pass on to their next of kin, according to whatever is written in your will.

This is why it is incredibly important to have a Will in place if you are to purchase a property as a tenant in common.

When it comes to being a tenant in common and taking out an equity release loan, when one owner passes away, your lender might have the right to restrict your equity release plan in the future, including restricting the opportunity to release more money in the future or to port your mortgage to a new property.

If you are a tenant in common but are confused about what this means in terms of taking out an equity release plan, then talk to a member of the Equity Release Warehouse team for more help and support.

Please call our 24-Hour Helpline: 0330 058 1579

Can Equity Release Be Taken Out For Leasehold Property?

The Equity Release Council makes it very clear that you are able to release equity on a leasehold property, as long as the leasehold agreement falls within the lender’s terms and conditions [16].

Each lender has different rules and terms and conditions when it comes to leasehold properties, and the terms and conditions will differ depending on which lender you opt to go ahead with.

For example, most lenders will accept a leasehold property for an equity release loan as long as the lease has a certain amount of years left.

Most lenders need you to have at least 75 – 80 years left on your leasehold, although you are able to extend the lease should you want to apply for an equity release loan [16].

Additionally, your lender will most likely ask a surveyor to attend your property to check that your property is in good condition, although this is normal when it comes to all equity release loans and mortgages.

If your lease is considered too short for lenders, then you have a few options available to you according to the Equity Release Council.

For example, you could opt to buy the freehold property, or alternatively extend your lease alongside applying for an equity release loan [16].

Please call our 24-Hour Helpline: 0330 058 1579

How much does it cost to extend the lease on my leasehold property?

According to a study carried out by Money Saving Expert, Martin Lewis, people are spending thousands on extending the lease on their leasehold property.

However, he also states that after years of pressure, the Government is now pledging to make it easier and cheaper than ever to extend the lease on a leasehold property [17].

It is also important to remember that adding length onto your leasehold can add a significant amount of money to your properties value.

Usually, if a property only has a short amount of time left on its lease, then the property will usually only sell for less than the asking price and could knock off thousands from the expected sale price and true value of the property [17].

If you own a leasehold property but are confused about how this might impact taking out an equity release plan, then talk to a member of our team at the Equity Release Warehouse team for more help and support.

Please call our 24-Hour Helpline: 0330 058 1579

Which Equity Release Company Is Best?

Thanks to the Equity Release Council and Financial Conduct Authority, the demand for equity release products has skyrocketed across Surrey and the rest of the UK.

This means that there are now numerous different equity release lenders and providers who offer a range of different plans each with different benefits.

Below is a list of some of the most popular equity release companies across the UK and Surrey.

1. Equity Release With Aviva

Aviva has been offering equity release plans for a number of years now, and have a great reputation when it comes to equity release.

Whilst most equity release companies offer both lifetime mortgages and home reversion plans, Aviva only offer lifetime mortgages to their customers.

With Aviva’s equity release lifetime mortgage plan, you get to remain living at home for as long as you want, are able to release a tax free amount and will be offered a fixed interest rate.

You do not have to repay anything until after you pass away and will benefit from a no negative equity guarantee, safeguarding your family and their finances.

2. Equity Release With Canada Life

Canada Life is another well known equity release company who operates throughout Surrey and the rest of the UK. They offer both lifetime mortgage and buy to let mortgages, which allow customers the chance to unlock the equity that is inside their home.

They are also members of the Equity Release Council, which means that they operate under the strict standards that the Equity Release Council put in place.

They offer both equity release advice and ongoing support. They also allow you the chance to release up to 10% of the value of your home without being charged any early repayment fees.

They also offer free home valuations, if you apply for a lifetime mortgage through Canada Life and also won’t charge you a completion fee.

Please call our 24-Hour Helpline: 0330 058 1579

3. Equity Release With Lloyds Bank

Lloyds bank partners with Scottish Widows to offer their customers equity release plans. They offer lifetime mortgages to anyone aged 55 or over, who owns their own home and has enough equity built up in their home.

Again, Scottish Widows is regulated by the Financial Conduct Authority and the Equity Release Council, which ensures that all plans offered by Scottish Widows are fair, transparent and offered in the client’s best interests.

When it comes to early repayment charges, you are able to make an early payment a year, which can only be up to 10% of the value of your outstanding mortgage balance, excluding interest.

4. Equity Release With Age Partnership

Equity release plans with Age Partnership is the ideal option for anyone who wants to release a set amount of equity from their home.

Age Partnership have now won many awards for their equity release plans and offer free advice for all potential customers considering equity release in Surrey and throughout the rest of the UK.

They charge you a total of £1,895 for their advice and require you to hire a solicitor to handle the legal parts of your application.

When assessing whether you are eligible for their equity release loans, they will look at your age, your health and the current value and condition of your home.

5. Equity Release With Just Retirement

Just Retirement is less well known, compared to other equity release companies. They partner with HUB Financial Solutions, that offer expert, jargon free advice and support.

They do charge an advice fee of £1,100 but this is usually only charged upon completion of your equity release loan, so will be taken from your loan amount.

They will work with you and with your family closely to ensure that equity release is the right option for you and actively encourage you to involve your family and friends when it comes to making your decision.

They are members of the Equity Release Council, so are fully regulated and must abide by the standards and values that the Equity Release Council set.

Please call our 24-Hour Helpline: 0330 058 1579

6. Equity Release With Key Group

The Key Group is a huge company that specialise in retirement financial planning. They advise with all sorts of stuff including later life mortgages, Wills and Lasting Power of Attorney’s as well as things equity release.

The Key Group is rated 5 stars on Trustpilot, with over 17,000 reviews.

They’ve now won over 80 industry awards for their work and have a lot of experience and knowledge when it comes to equity release and later life finances.

7. Equity Release With Legal And General

Legal and General partner with Key and their own Legal & General Advice Service to bring you equity release.

They offer lifetime mortgages to anyone aged 55 or over, who owns their own property in the UK in good enough condition to be sold on for a profit.

With Legal and General, interest rates are fixed for life and you don’t have to worry about any monthly repayments, as the loan is only payable once you pass away or move into a care home.

8. Equity Release With Nationwide

According to Nationwide, more and more people are considering releasing equity from their home.

They also found that on average, over 55’s who own a property in the UK are sitting on more than £125,350 of equity.

However, the large majority of these people simply do not know where to start when it comes to equity release [18].

As a result of this, Nationwide now runs webinars to help over 55’s across Surrey and the rest of the UK better understand the ins and outs of equity release [18]. Nationwide claims to be one of the most trusted building societies across the UK and they now offer a range of equity release products to their customers, old and new.

Please call our 24-Hour Helpline: 0330 058 1579

9. Equity Release With Saga

Saga offers a lifetime mortgage to those aged 55 or over. They work with Just to provide this and are also in partnership with HUB financial solutions.

With Saga, you are able to release one large lump sum or are able to opt for a number of smaller payments, referred to in the industry as a drawdown plan.

You can pay off some of the loan as you go, including some of the interest you will be charged over the years.

All interest rates are fixed and will be for the duration of your loan.

Saga will take a number of factors into consideration when you apply for an equity release loan with them, including your age, your health and a number of lifestyle factors.

10. Equity Release With Sunlife

Sunlife is one of the most well known equity release providers throughout the UK.

They work with lenders to provide some of the very best plans and interest rates to their customers and are now rated five stars on defaqto.

They have their very own online equity release eligibility checker and also offer a free equity release guide and questionnaire.

Sunlife is a member of the Equity Release Council, so all of their products and offerings are monitored and up to scratch.

Please call our 24-Hour Helpline: 0330 058 1579

Do I Need A Solicitor When Applying for Equity Release in Surrey?

If you want to apply for an equity release loan, then you will need to appoint a solicitor to do a lot of the groundwork for you.

In fact, the Equity Release Council makes it mandatory for those applying for an equity release loan to instruct a solicitor to do the work for them.

This is because the ins and outs of equity lease can get confusing and complex, which is why you need a solicitor to check that all is above board for you and that you aren’t falling victim to any scams.

By instructing a solicitor, you will be receiving independent, legal advice and will receive support from someone who is acting in your best interests [19].

Your equity release solicitor will be responsible for laying out the risks, rewards and obligations of your specific loan and will ensure that you fully understand what you are agreeing to [19].

They will spend a number of weeks or even sometimes months on the conveyancing process, which involves drawing up all contracts and agreements as well as your loan illustration.

Your solicitor will send over a list of their costs and fees towards the start of the process and before they carry out any work on your behalf.

This is an incredibly important part of the process and you must ensure that your solicitor does this before carrying out any work, so that you are not met with any nasty surprises and invoices.

Your solicitor will also make it clear how long they think the work will take them, which is usually anywhere between 8 – 12 weeks, depending on the complexity of the equity release application and how busy they are.

You should also make sure that you hire a highly qualified solicitor who has experience in dealing with equity release loans and who has a good track record.

We also recommend that you choose a solicitors firm with a number of staff members and avoid choosing a stand-alone solicitor who works for themselves.

This is because a lot of these loans are often time-sensitive, so you cannot afford your loan and application to be halted due to illness or other issues.

By choosing an established solicitors firm, you can be more confident that your loan will be taken care of swiftly and professionally. All solicitors in England and Wales are regulated by the Solicitors Regulation Authority and Law Society.

Please call our 24-Hour Helpline: 0330 058 1579

What are the Alternatives to Using Equity Release in Surrey?

At Equity Release Warehouse, we understand that equity release in Surrey and throughout the rest of the UK might not be for everyone and that there are some downsides to equity release.

These downsides include things such as compound interest, complications should you want to move home and a lack of inheritance for your next of kin.

Whilst we see the good and joy that equity release in Surrey can bring, it is important to remember that equity release simply is not for everyone.

If you need access to more money but want to avoid taking out an equity release loan, then there are a number of alternatives available to you.

These alternatives to equity release are listed below for you.

Getting a retirement job

It is not uncommon for retirees to get a retirement job. Getting a job in your retirement is a great way of ensuring that you have some extra cash to pay the bills, go on holiday or simply live a better lifestyle.

Some people might turn their noses up at having to work throughout their retirement, as they’ve usually worked their entire lives for the chance to be able to retire and enjoy their retirement without the stresses of having to work.

However, your retirement job does not need to be full time, or stressful.

For example, you could work part time in your local coffee shop, garden centre or supermarket.

Typically, these jobs aren’t stressful and could even provide you with a bit of exercise and company, especially if you are struggling with loneliness.

In fact, numerous studies have now found that working during your later years can have a huge benefit to your health, both physically and mentally.

However, these jobs do need to be both low demand and high reward, meaning that you should keep your job as stress free as possible and make sure that you are finding meaning from your work [20].

Please call our 24-Hour Helpline: 0330 058 1579

1. Asking for a personal loan

Instead of applying for an equity release loan, you could always apply for a personal loan. You can do this through getting a credit card or borrow the money through a bank loan.

Usually, you will tend to repay less when opting for a bank loan over an equity release loan.

Although, this does tend to depend on the interest rate and loan you are approved for.

It is also important to remember that with equity release loans, all interest rates are fixed, although this is not the case with a personal loan.

It is also important to remember that you might be rejected for a personal bank loan depending on your age, whereas lifetime mortgages are only appropriate for those aged 55 or over.

If you are confused as to whether an equity release loan is more suitable for you than a bank loan is, then talk to a trusted financial adviser about both options.

2. Downsizing

Finally, downsizing your property is another great option if you are unsure as to whether equity release is suitable for you or not.

Downsizing your home involves selling your current property to buy a cheaper and usually smaller one.

Whilst not everyone wants to do this, this can be a great option for anyone who’s getting older who might not want to have to maintain a large home as they age and their mobility gets worse.

If you are looking to downsize, make sure that you are choosing a property that is still suitable to you and your family.

For example, think long and hard about how many bedrooms you need and think about how hard the garden will be to maintain.

When you sell up and downsize, you will be left with the extra proceeds from the sale of your house, which could be in the tens of thousands depending on the value of your home and the value of the home that you are buying and downsizing to.

Please call our 24-Hour Helpline: 0330 058 1579

Making the Most of the Equity Release Warehouse Website

Though our location pages are extremely helpful, you may want to learn more about equity release in general, and not just in Surrey.

If this is the case, please have a look at other areas of our website that cover the benefits and disadvantages of equity release, and show you how to get started.

You could head to our help centre first, where we answer your questions in a clear, detailed way, then go to the plans page, where you can see all the different plans that are available in Surrey as well as the UK in general.

Speaking to Surrey Equity Release Specialists and Equity Release Advisers in Surrey

It is not a good idea to take out equity without first consulting a highly experienced adviser who is regulated by the financial conduct and the Equity Release Council (ERC). This can be either an independent financial adviser, a firm, or a charity.

Sometimes there is a fee to pay to get professional advice, but do your research as many advisers in Surrey offer free services to interested customers.

What is the Equity Release Calculator & How Can I Use it?

We have a free equity release calculator on our site that will calculate the amount of money you could release from your home after you input your type of property, value of property, and your age.

We do not ask for any personal details so please don’t worry about being contacted after you have used the equity release calculator. What’s more, your data is protected so it is extremely safe to use.

Please call our 24-Hour Helpline: 0330 058 1579

Get in Touch With Equity Release Warehouse Today

If this article has left you intrigued to find out more about releasing equity, please call us today on our company number, 0330 058 1579, or ask us to give you a call.

All of our advisers are incredibly knowledgeable and friendly, so you will be in good hands. They offer independent advice to clients which will be a step up from the general information provided here.

We encourage you to be open with our helpline staff about how much you know about equity release in Surrey, as this will help them to do their job well.

There is no shame in being unsure about the ins and outs of taking out equity in Surrey, as our advisers can tell you everything you need to know and help you choose the right plan for you.

Whether you live in Woking, Guildford, Reigate, Frimley, or another area of Surrey, if you are over 55 and your property is worth over £70,000, you are eligible for equity release.

Do not hesitate to get started on your journey, as you could be accessing a valuable loan in no time.

We also help consumers in other areas of the UK, including the nearby counties of Sussex, Kent and Greater London, but also areas that are further afield. Have a look at our home page to see a full list of the areas we work in.

We hope we have explained everything you have been wanting to know, but again, we can explain in much more detail if you contact us.

All advisors we work with are regulated by the Financial Conduct Authority. This means you are covered under the Financial Services Compensation Scheme, and you lodge a complaint with the Financial Ombudsman Service (FOS) if you are unhappy about the advice you receive in relation to equity release.

You can find regulated advisors on the Financial Services Register.

If you are unhappy about the legal advice you receive in relation to equity release, you can lodge a complaint with the Legal Ombudsman.

Access help and advice today across Surrey in Abbotswood, Addlestone, Ash, Ashford, Ashtead, Bagshot, Banstead, Bargate Wood, Bellfields, Berrylands, Betchworth, Binscombe, Bookham, Brockham, Brookwood, Burpham, Busbridge, Byfleet, Camberley, Carshalton, Caterham, Catteshall, Caversham, Cheam, Chertsey, Chessington, Chilworth, Chipstead, Claygate, Cobham, Coulsdon, Cranleigh, Croydon, Dorking, East Molesey, Egham, Epsom, Esher, Ewell, Farncombe, Farnham, Frimley, Frith Hill, Godalming, Godstone, Great Bookham, Guildford, Hackbridge, Haslemere, Hindhead, Hook, Hook Heath, Horley, Horsham, Hurst Green, Kenley, Kingston Upon Thames, Kingswood, Leatherhead, Lightwater, Limpsfield, Lingfield, Merton, Milford, Mitcham, Morden, New Addington, New Malden, Oxshott, Oxted, Purley, Redhill, Reigate, Richmond, Sanderstead, Stoneleigh, Surbiton, Sutton, Tadworth, Thames Ditton, Virginia Water, Wallington, Walton on Thames, Walton on the Hill, Warlingham, West Byfleet, West Molesey, Westborough, Westfield, Weybourne, Weybridge, Whyteleafe, Windlesham, Woking, Woldingham, Worcester Park and Wrecclesham.

References

[1] House Prices in Surrey https://www.rightmove.co.uk/house-prices/surrey.html

[2] https://www.halifax.co.uk/mortgages/equity-release-mortgages/how-does-equity-release-work.html#:~:text=Equity%20release%20is%20a%20way,move%20out%20of%20your%20home

[3] https://www.moneysavingexpert.com/mortgages/equity-release/

[4] https://www.thetimes.co.uk/money-mentor/article/equity-release/?gclid=Cj0KCQjwuNemBhCBARIsADp74QQeCKp8nKtbYo_4YbbwOvSHJadv6OjhtGe5RUv59w-NbIx5z-YX5K8aAmO-EALw_wcB

[5] https://www.halifax.co.uk/mortgages/help-and-advice/what-is-loan-to-value.html#:~:text=Loan%20to%20value%20ratio%2C%20or,you%20pay%20as%20a%20deposit

[6] https://nationaldebtline.org/fact-sheet-library/equity-release-ew/#:~:text=Equity%20release%20can%20be%20helpful,advice%20before%20choosing%20this%20option.

[7] https://www.halifax.co.uk/mortgages/help-and-advice/what-is-an-interest-only-mortgage.html

[8] https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/how-to-calculate-buying-out-spouse-house-uk/

[9] https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/additional-borrowing-on-mortgage-for-home-improvements/

[10] https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/

[11] https://www.equityreleasecouncil.com/what-is-equity-release/faq/what-is-a-no-negative-equity-guarantee/

[12] https://www.equityreleasecouncil.com/about/standards

[13] https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/can-i-sell-my-house-if-i-have-equity-release/

[14] https://www.equityreleasecouncil.com/what-is-equity-release/faq/what-happens-if-i-want-to-repay-the-loan-early/

[15] https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/equity-release-what-happens-on-death/

[16] https://www.equityreleasecouncil.com/what-is-equity-release/faq/can-i-get-equity-release-on-a-leasehold-property/#:~:text=Yes%20you%20can%20have%20Equity,%27term%27%20of%20the%20lease

[17] https://www.moneysavingexpert.com/mortgages/extend-your-lease/

[18] https://www.nationwidemediacentre.co.uk/news/releasing-equity-from-your-home-without-leaving-your-home

[19] https://www.equityreleasecouncil.com/what-is-equity-release/faq/why-do-i-need-a-solicitor-to-help-me-through-the-equity-release-process/

[20] https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-021-11423-2#:~:text=The%20single%20study%20reporting%20a,to%20those%20who%20had%20retired.

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